The EIB Lent €7 Billion to Soiled Transport Initiatives — Evaluation

Final Up to date on: tenth July 2025, 01:59 am

After declaring itself a ‘local weather financial institution’, the EU funding financial institution nonetheless financed new roads and airport expansions.

The European Funding Financial institution (EIB) lent greater than €7 billion for brand spanking new roads, airport expansions and different transport initiatives that may enhance CO₂ emissions. That’s in response to a brand new evaluation of its transport mortgage guide between 2021–2024 by inexperienced group T&E. The loans undermine the EIB’s environmental and local weather objectives which it adopted in 2021 when it declared itself the ‘EU local weather financial institution’.

Roads

The EIB lent €6.1bn, greater than three-quarters of its street infrastructure allocation, to construct new roads, the report finds. T&E mentioned constructing new motorways will increase site visitors and street transport emissions and is of restricted financial profit in an already nicely developed street community. One motorway in mid-northern Poland acquired €200m from the EIB regardless of it operating by way of nature safety areas — and the financial institution’s personal estimate that it’ll generate greater than 3,000 tonnes of CO₂-equivalent emissions. On prime of this, the financial institution even counts the mission in direction of its setting and local weather spending (CA&ES), arguing the motorway would enhance local weather resilience at occasions of heavy snow.

Airports

The EIB lent virtually a billion euro (€890m) for initiatives that embody airport growth — in direct contravention of its personal guidelines.[1] Bologna Airport acquired €90m to broaden whereas the Spanish airport firm Aena obtained €800m in direction of its capital expenditure plan. Aena has plans to broaden Madrid airport and 12 different airports to fulfill aggressive passenger site visitors progress targets. Supporting airport growth undermines efforts to cut back aviation emissions and dangers locking in high-carbon infrastructure.

Fuels

On prime of the cash lent to street constructing and airport expansions, six out of the EIB’s 17 transport fuels initiatives had been for the event of biofuels that can’t be produced sustainably at scale (€1bn), the report finds. In a single case, Spanish petroleum firm Repsol acquired €120m for a biofuel plant in Cartagena {that a} latest investigation discovered depends closely on imported feedstock. Wastes imports for biofuels are doubtless topic to widespread fraud with virgin oils, resembling palm oil, being handed off as used cooking oil, animal fat and different waste merchandise.

Until Eichler, Sustainable Finance Coverage Officer at T&E, mentioned: “The EIB has made some progress in cleansing up its transport loanbook. However its continued lending of taxpayers’ cash to motorways and airport expansions is including gas to the hearth of the local weather disaster. To change into the EU Local weather Financial institution, the EIB must ramp up its help for emission reductions inside an EU industrial technique. This implies de-risking investments in European manufacturing of e-fuels and batteries and their elements. It’s time the EIB aligns its transport investments with Europe’s local weather and industrial ambitions.”

Cleantech

Simply €0.7bn of EIB loans had been for inexperienced and hydrogen-based e-fuels, the report finds. These applied sciences are key to decarbonising aviation and transport. T&E mentioned this financing shouldn’t be sufficient to maintain Europe forward within the cleantech race and ought to be elevated whereas biofuels lending (€1.1bn) should be ended. Of the €3.9 billion lent to 17 batteries initiatives, €2.5 billion went into battery manufacturing, the report finds. T&E welcomed the concentrate on batteries however known as for better financing for cleantech elements and supplies the place the EU stays extremely depending on imports.

Optimistic steps to construct on

T&E welcomed the €23.6bn in lending for rail upgrades — the EIB’s largest transport beneficiary. Slightly than supporting megaprojects, the financial institution has co-financed the upkeep and improve of the community and has financed new rolling inventory. T&E additionally praised the €13.3bn in EIB loans to help cleaner city transport by way of electrical buses and infrastructure for public transport, strolling and biking.

The EIB will this 12 months renew its Local weather Financial institution Roadmap for the years 2026-2030. T&E mentioned the up to date roadmap should absolutely align transport lending with reaching the EU’s 2030 local weather targets. Which means:

• No loans for airport growth, new roads or biofuels

• In ports, solely electrification, e-fuel readiness and local weather proofing ought to be supported

• Ramping up help for home cleantech industries, notably the battery worth chain and e-fuels

• Shifting lending from biofuels to e-fuels and hydrogen for planes and ships

• Supporting the electrification of street transport, together with zero-emission expertise and charging infrastructure

• In rail and concrete mobility, the present concentrate on rail upgrades and zero-emissions city transport ought to be continued.

Until Eichler mentioned: “The Draghi report rightly highlighted how Europe should make investments now to reap the advantages of the inexperienced transition. To this point, that isn’t occurring sufficient. The EIB should repair its roadmap to spice up its help for an EU cleantech sector that’s struggling to be born.”

Observe to editors:

[1] “Not supported… Airport capability growth.” See Annex 1, Desk C of the EIB Local weather Financial institution Roadmap.

Information launch from T&E.